Long Acre Ltd has just finished its first year of trading to 31 December 19X3.

Corporation tax throughout was 35 per cent, the ACT rate was 20 per cent and income tax 25 per cent. You are given the following information:

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(i) Net trading profit, after adjustment for (ii) but before other adjustments, was 220,000. (ii) Depreciation of 50,000 was charged in the accounts. Capital allowances amounted to 90,000. (iii) An interim dividend of 5 per cent on 400,000 1 ordinary shares was paid on 1 July 19X3. (iv) ACT on (iii) was paid on 30 September 19X3. (v) Debenture interest of 9,600 (net) was paid on 31 December 19X3. (vi) Income tax deducted from debenture interest was paid on 31 January 19X4. (vii) A final dividend of 71/2 per cent was proposed for the year. (viii) Corporation tax for the year was estimated to be 90,000. You are required to: (a) draw up the double-entry accounts recording the above (except bank); (b) show the relevant extracts from the profit and loss account and the balance sheet.